Determinants of Financial Governance Practices- Evidence from NGOs in Ghana

Abstract

Purpose - This study explores financial governance as practiced by NGOs in Ghana and further examines the determinants of the financial governance structures of the NGOs. The study specifically investigates which organizational-level characteristics exhibit any link whatsoever with governance as it relates to budget preparation, budget execution and internal controls and budget monitoring.Design/methodology/approach - Using a questionnaire to conduct the survey, a cross-sectional regression analysis was executed.Findings - The findings of the study indicate that the most positively influential factor in explaining an NGO's adoption of a governance framework is its size. The other variables, organizational age and independence, are not significant across all three financial governance proxies and when they prove significant, the effect is negative.Originality/value - The findings hold important policy implications and especially so for countries that attract significant funding via relatively small-sized NGOs.